Pakistani, Iranian nationals charged for healthcare fraud in Oregon as part of DOJ’s $6.5 BILLION crackdown

The charges against Jahangeer Ali and Mehrdad Gerami were announced Tuesday as the Department of Justice unveiled what it described as one of the largest health care fraud enforcement actions in its history, spanning 56 federal districts and 455 defendants nationwide. US Attorney Scott E. Bradford announced that federal charges were filed against Ali, 34, a Pakistani citizen, and Gerami, 67, of Coos Bay, Oregon, and is reportedly Iranian, in separate cases involving alleged health care fraud schemes.

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According to court documents, Ali owned Oregon Clinical Laboratory, which allegedly submitted fraudulent genetic testing claims to Medicare Advantage plans, causing losses exceeding $15 million. Prosecutors allege the beneficiaries and physicians listed on the claims had never heard of the company and that the genetic tests were never performed. Ali has been charged with health care fraud.

Gerami, meanwhile, was charged with conspiracy to commit health care fraud tied to sleep study testing that allegedly caused losses of at least $2.1 million. Federal prosecutors allege Gerami's companies, Coastal Diagnostic Testing Group and Coastal Diagnostic, billed the Department of Health and Human Services, the Veterans Health Administration, and private insurers for sleep studies purportedly conducted in-office when they were actually performed at home or not performed at all.

"Health care fraud inflates costs, restricts access to critical services, and siphons taxpayer dollars from senior citizens, people with disabilities, low-income families, veterans, and others who rely on these federal programs," Bradford said.

The Oregon cases are part of a nationwide DOJ operation that resulted in charges against 455 defendants, including 90 doctors and other licensed medical professionals, accused of participating in health care fraud and opioid-related schemes involving more than $6.5 billion in alleged false claims. Federal officials said the operation spanned 56 federal districts and 45 states and territories, making it one of the largest health care fraud enforcement actions in Department of Justice history.

According to the DOJ, the takedown also led to the seizure of more than $182 million in cash, luxury vehicles, jewelry, and other assets. Federal agencies additionally suspended or revoked billing privileges for thousands of health care providers and pursued civil actions seeking billions in recoveries for federal health programs.

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